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This paper examines four issues associated with the Officer model, in the context of estimating the cost of equity capital for regulatory purposes. The conclusions are thus. First, regarding the issue of foreign investors, continued use of a version of the Capital Asset Pricing Model that...
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determine which regulation yields a higher welfare. The first condition is whether the solutions under welfare maximization …) regulatory profit, then the dual-till (single-till) regulation yields a higher welfare, as long as the profit of non …
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